Inflation 'news' and exchange rates

Yakov Amihud, Avner Kalay

Research output: Contribution to journalArticlepeer-review

Abstract

This paper presents a new test of the purchasing parity theory by investigating the announcement effect of unexpected inflation on the exchange rate of the US dollar against three European currencies. The evidence presented does not support the theory, at least in the very short run.

Original languageEnglish
Pages (from-to)333-338
Number of pages6
JournalEconomics Letters
Volume12
Issue number3-4
DOIs
StatePublished - 1983
Externally publishedYes

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